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big question is, will it find a bottom and the big question for us still what caused that tremendous drop a couple of days ago when it went down about 3% in 20 minutes. we still don't know. liz: why aren't we seeing rbob gasoline go down either? "money" with melissa francis live from houston is next. david: we'll see you tomorrow. melissa: i'm melissa francis and here's what's money tonight. open for business in houston, texas. welcome to the beautiful campus of rice university. we are kicking off our two-day special report on one of the most thriving cities in the country. houston is the energy capital of the united states and some of the biggest names in business are here to join me. first, the politics of oil. america's energy independence is a pivotal issue in the presidential campaign. how could the election's outcome impact the industry and houston's economy? i will ask richard kinder, chairman and ceo of oil and
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gas pipeline giant kinder morgan. bhp billiton drilling deep into texas shale. the mining company is spending billions to cement its foothold. chief executive mike yeager is here to explain how the booming energy source is transforming his entire business. the race is on to find the next big gusher. where will the top energy investors see explosive new profits? i will have joe foster. even when they say eight it's not, it is always about money. melissa: all right the first let's take a look at the day's market headlines while we look at that gorgeous campus. a slate of economic reports caused stocks to end the day mixed. weak data out of china and higher than expected u.s.
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jobless claims spooked investors early but stocks came off insession lows. the dow closed up 18 points. bank of america will speed up a widespread cost-cutting plan. this is according to "the wall street journal" the bank is preparing to slash 16,000 jobs by the end of the year. the layoffs will cause bank of america to lose its trial as its title as the largest bank employer in the u.s. shares were down 1% on the news. call it iphone eve. apple addicts lining up around the world. the iphone 5 officially hits the store shelves tomorrow. estimates expect 10 million iphones will be sold just this weekend. wow. to our top story, the politics of energy and oil. we're less than 50 days away from the election. both president rom obama and mitt romney have been touting their energy.
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let's talk to some of the folks at the top of the energy industry and my first guest definitely has a lot of skin in the game. it is richard kinder, ceo and cofounder of kinder morgan, the third largest energy company in north america. he also happens to be number 36 on the forbes newest 400 list of wealthiest americans. thanks so much for coming on. you moved up 10 spots this year. pretty good. >> i wouldn't pay too much attention on that. if you hang on the backboard long enough you get a few rebounds. melissa: okay. before we get to politics i want to ask you about houston. we came down to this city because we were bold over by the economy which grew better than 8% last year, added back all the jobs lost during the recession. what does houston do right? >> i thinkt has a number of real advantages going for it. the first thing i like to say is the culture. the pet phrase i use, melissa is that in houston, you are what you achieve and
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to me is sort of the american dream encapsulated there is a great deal of upward mobility. we have tremendous diversity. we have tremendous hispanic population, asian population, anglo, african-american, a tremendous melting pot which i think adds tremendous advantages. then we have a lot of pluses but there are three big drivers of the economy. in my judgment, that is the energy business of course. this really is the world headquarters of the energy business. there is tremendous medical center a couple miles from where we're sitting today. and then we have depending how you count it, the first or second largest port in america. so we have some real advantages that i think are going to pay dividends for many years to come. melissa: that's an interesting phrase. you said you are what you achieve. you know, that's not necessarily the political message that we're hearing across the board right now. achievement has been, you know, sort of politicized at this point. do you think that message is wrong? >> well i do. i happen to believe that,
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what makes america great is the fact that in this country there really are pretty well unlimited opportunities if you are willing to work hard and certainly there are differences in luck and everything is not solely due to talent. but i believe there is the ability to achieve in this country and i think people vote with their feet every day to come to this country because they believe in what this country has to offer. that is the most powerful endorsement of the american dream to me is the immigration that we continuously see. melissa: even into houston as well? >> absolutely. melissa: you have migration into the city. >> absolutely. melissa: you think right now the political climate embraces what you just said, that you are what you achieve? >> i think it is unfortunate in this particular context we've had a lot of sound bites that are playing to political opportunists that i think are unfortunate but i really believe most people in this country believe that the american dream is pretty
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special and that this is a pretty special country. melissa: is there a better outcome one way or the other for business? >> well i think, you know, i'm not in the political game. i wouldn't last two minutes. they would throw me out. but, i think the key thing from my perspective, anyway, is, we need to have a level playing field. we need to have a, in the energy field, for example, we have just tremendous opportunities, particularly in the natural gas area. we've got a, a game-changer here. we've got a fuel that is cheap, abundant, domestic, plentiful. we ought to just be doing everything we can to exploit that. melissa: you're talking about fracking for natural gas exploded? >> yeah. the shale plays which of course are predicated to a large extent on tracking. but the opportunities for natural fast, you want to talk about about response to climate change and reducing co2 emissions this is the golden key to open the door. much more than most
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renewables will ever do because you can move the needle with natural gas in a five or 10-year period. you can solve a great deal of the emissions eschews in this country. >> do you feel like the hammer is coming down in a certain extent from a regulatory point of view on natural gas especially when you talk about shale or fracking and are you concerned about that and america's energy independence as a result? >> i am concerned about regulation and in particular i think we have overregulation at the federal level. anybody in their right mind wants to see anything done in this business in a safe environmentally respectful way. i'm really confident, we're a pipeline and terminal company, not upstream oil and gas company but you think i know enough about it that i'm confident fracking is safe. you have to make sure that you're carrying out your drilling program correctly. that the casing on the wells is appropriate. but i think any third party independent examination of fracking will show it is a
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very safe way of producing natural gas and oil. melissa: you said you don't get into politics and i know you don't have a political action committee, your company doesn't, kinder morgan. you don't make political contributions. do you feel one side or the other supports your view on tracking and natural gas and are you worried about a return of the obama administration in the next election? >> so far when you look at what two candidates espoused, what romney said, makes more sense for me from the energy business. we ought to have less regulation. we ought to have a level playing field. we're not asking for any subsidies, in my end of the business anyway. and we would like to see just a level playing fields and we would like to see natural gas developed to its fullest extent. melissa: before i let you go because i don't see you do a lot of interviews on tv. and i hadn't heard this before as chairman and ceo you received "morningstar"'s ceo award you receive a
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dollar per salary a year, no bonus, no restricted stock. you do own 24% of your company's stock. obviously we her you're loaded because you moved up on the forbes list. but do you think more ceo's should take that approach where you're a stockholder? >> well, i think the reason that we did this almost 15 years ago we started this working for a dollar a year is that i think anytime you can align the interests of your shareholders with your senior management that makes a lot of sense. not everybody will found a company and not everybody can, i don't think you can expect every ceo to work for a dollar a year but i do think the more that you can align the ceo and the senior management with the interests of the shareholder and i don't think anybody objects to paying ceo's or coos good dollars if the company is successful. what they object to is sweetheart packages if a company doesn't do well, and the senior management still does well. that's, doesn't happen at
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kinder morgan. melissa: part of your company is a master limited partnership. >> that's true. melissa: which is under under assault to a certain extend on this fight who pay what is taxes. do you feel like there is a threat there? >> i don't really think so. we'll see what happens post the election. everybody recognizes that master limited partnerships pay taxes. just the shareholders pay the tax instead of the corporate entity paying the tax. i think market cap today of mlp's is, the $300 billion or so. it's a sizable part of our economy in the midstream energy business. melissa: yeah. richard kinder, thank you so much for coming on. >> thank you, melissa. melissa: a proud houstonian, right? >> i am. melissa: now to texas shale. something that has become a colossal new source of energy when the largest mining company in the world invests billions in it. bhp billiton bought $20 billion worth of shale assets just last year. many of them were right here
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in texas. the company's aggressive plan to gain dominant foothold in the industry is expected to create hundreds of jobs. joining me is the houston energy magnate tasked with leading that charge, mike yeager. he is the chief executive of the bhp billiton petroleum and here in a fox business exclusive. thanks for joining me. that was a quick switch. well-done. very smooth. very smooth. >> we're fast up here. you know that. melissa: that's right. there is an energy revolution going on right now in this country. melissa it will be the biggest thing in most of our lifetimes. maybe the biggest thing in the united states in the last 50 years, the chance for us to have hydrocarbons that are abundant for decades and decades to come at a moderate price and in a way where clearly it is all being done here at home. so we're very excited about that and citizens of this great country will be beneficiaries of it. melissa: i have followed energy for a long time and i was amazed to see the transformation happen and the price of natural gas
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just dropped like a rock as a result. and i wonder, did it drop too far too fast? because i'm told annecdote alley a lot of wells are drilled and just sitting there right now because the price is so low. is that a problem? >> well there are a number of factors there. we had the fourth or fifth warmest winter we had in the united states last year. melissa: that's true. >> when that happened, when we didn't pull gas out of storage what you do during the winter, then gas on gas competition occurs and prices came down. we're very bullish on this commodity for the long term. clearly it makes the united states more self-sufficient in a number of ways. it is cleaner. it will be abundant. it will be used for power. it will be used ultimately for transportation. we don't really focus on any near term thing. this is a 30 to 50-year who are son. that is really the outlook we want to have. melissa: that is in terms of price. are you concerned about regulation? we were talking about that in the last segment as well with rich kinder. there are a lot of different
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studies out this year that the regulatory could increase by billions next year. >> we operate in the deepwater all over the world. clearly when you're out there in 4,000, 5,000 feet of water, drilling to 30,000 feet the regulatory environment we're very used to. all we ask for is things that are good for us, that help the common citizen, have more assurance that the cause us a clean and steady playing field and then we'll abide by that. obviously there are things not in that vein where they don't help us but the things that do help us we're not afraid of the regulation at all. clearly we want to work with the government to make that right. >> where do you see price of gas and oil? >> oil a traded commodity. what happens in any part of the world can have a slight influence on that but this is really a global balance much supply and demand and it is cycled over time. melissa: right. >> gas in the near term, the
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rig count is declining here in the u.s. it is sold in the united states. but the petrochemical industry, manufacturing, like i say, power, all these things, supply is going to grow. this is the largest market in the world. something, we'll see gas gradually incline over the next few years and work its way back up. melissa: back up to 5, 10? >> no, think we're talking about somewhere in the 4 to $5 range. melissa: really? >> if that were to occur and producers are happy, citizens are happy because everybody's power bill will be moderate, the government will be pleased and it works for everybody. so i'm hoping that's where we'll end up. melissa: you just bought 20 billion in shale assets last year. i mean obviously you're putting a lot of money on the line. you really believe in this. >> melissa we have 11 billion barrels of resources in the ground. it's real. we have 45 rigs working right now as i speak all across the united states in big, giant fields and every well has hydrocarbons to it.
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right now 80% or 85% of our rigs are drilling for oil rather than gas because of price. melissa: right. >> but the technology's there. the activity is strong. clearly yes, we'll very confident. once again, 30 to 50 years. not like you have to have it in the next 90 days. melissa: that is a big investment in oil. where do you see the price of oil going? we saw it just this week a pretty significant collapse and some people are wondering if if that is here to say? i'm sure the blips are short term on your radar. >> they really are but when you drop down below 80 into 70s, things start to work a little differently on the supply side. as you get above 100 as you know people start backing off on the demand side. if i were to say long term that's where we are but none of us know. we're prepared to deal weather that on a daily basis. melissa: how about here in houston? obviously oil has big impact on economy. >> energy capital of the world. melissa: it is without question. do you ever have concern about overproduction, overbuilding, so much demand? you have people coming in,
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net migration into the city as opposed to out? you look what happened in places like north dakota. >> yeah. melissa: where you see all of these strange externalities as a result of all the drilling that is going on. >> funny you should say that. our minute and women that work in the field, if we're going to give them a place to stay there are certain parts in texas where you've got to get a hotel room three years in advance. melissa: right. you know what i'm talking about. >> no, but i think in the long term the infrastructure will follow. clearly we're doing things good for not only us but the towns that we live in. our employees live in these places. we support them. the hospitals, the schools, the education. melissa: yeah. >> this is all part of the fabric of the business. this industry is one of the kindest and most benevolent industry in the world an gives back every day. melissa: mike, thanks so much for coming on. appreciate your time. a lot of fun. >> thanks very much for having me, appreciate it. melissa: the search is on for the next energy cash cow. joe foster, one of the biggest energy investors in the game, tells us where he is planning to rake in new
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profits. that's coming up. plus the u.s. economy is sputtering but texas's economy is flourishing. senator kay bailey hutchison joins us on what the rest of the country should be learning from the lone star state. more money coming up right here from texas. we'll be right back. ♪
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♪ . melissa: how beautiful is that quad at rice university? welcome book to this special edition of "money" and our series, open for business. i'm here in houston, texas, right now i can tell you it is buzzing with energy, literally and figuratively. the latest trend, the growth potential, in a new technology, that is up price water to shale drilling. my next guest has just taken a stake in this developing area. joining me now in a fox business exclusive is joe foster, chairman of tudor, pickering and holt, partners. a private equity group that focuses on doing deals in
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the energy space which i think is incredibly clever. obviously you just made this investment. you're excited about the deal. what is appealing to it about you? appealing to it about you? >> sure. moving water around in the oil field is really big business ult as a result of all fracking and shale plays and tight rock plays in the country. investment you're talking about is called good heart energy services. what they started business to do is transport water from the wells and the other sources that exist, primarily in the permian basin at this time, in the past, this has been done by truck. they would find a source of water, either a well or a pond, and fill up a tank on a truck an haul it 20, 30 miles to a location to be use in fracking a well. what bighorn has done is develop a portable pipe
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system to that they can drill a well where water is. they can then, lay a portable pipeline, one with snap connections. so in a very short period of time they could have a line 15 to 30 miles long between the source of the water and the use of the water at the drilling rig location. melissa: it is such an interesting investment idea because it is akin to when somebody invests in oil they want to buy the oil field companies go into oil services because they feel people will be out there drilling. >> sure. melissa: do you think that is the best way to attract the trend in shale and fracking go for the tangential plays to make it happen? >> well, that's a good way. our fund invests in. fe, midstream operations and oil services. we consider this to be a oil field service project. melissa: yeah. >> we think there are good
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returns to be made in all three of those sectors. melissa: are you worried about regulation coming down the pipe? we've been talking about it all hour here. does seem like it is ramping up. you have to be concerned? >> this is regulatory friendly, compared to trucks transporting tons of water over a country roads and poorly made asphalt roads in west texas. this can be laid, the line can be laid sort of out of sight and and creates no real hazard to the environment. melissa: sure, fracking and shale, if they crack down on the main industry they will not need the support industry. so you have to be worried about the regulations as it pertains to the main business you're supporting? >> continuously we have to be concerned about. melissa: yeah. >> but the benefits of fracking are significant compared to not using fracking. melissa: yeah. >> and, what we're trying to do is make fracking more benign with this technology.
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melissa: yeah. what other kind of deals are you out there looking at? can you gift us a hint what industry they're in? i know energy is your focus but what o you like? >> well, sure. we are looking at an a and p company that, you know, drills also in the per me an basin. they have been very successful going into old wells. and here's an example again about water. this is not water used for fracking. this is water produced along with the oil. and we can make 50 to 100 barrels a day of oil but along with it it we get about a thousand barrels of water. we have to figure out ways to dispose of that water. now in this instance we can pump it back into the ground into some of the existing reservoirs but the fact we have a way to deal with water disposal makes this an investment that otherwise we might not make. melissa: very interesting. we're going to have to follow these invests.
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thank you so much for coming on, appreciate it. >> you bet. melissa: that was joe foster of course. texas's economy booms as the u.s. economy struggles to climb out of the gutter. how can the rest of the country steal a page from the lone star state? texas senator kay bailey hutchison joins me next. plus going green in houston, it may be america's capital for oil and gas but now it is moving to become the center of a green energy empire. we're going to explain all that, coming up. do you ever have too much money or too much energy? no way. ♪ i'm so glad you called. thank you.
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reporting that mr. murdoch is going to now oversee fox networks group. essentially the television aspects of news corporation here in the united states. however another publication says while that is true, it does not include the fox news channel. but "wall street journal" reporting that james murdoch will oversee the fox networks group here in the united states. back to melissa in houston. melissa: all right. adam, thanks so much. meanwhile we are open for business here in houston and it is our running theme down here. the texas economy is humming along while the rest of the economy is really struggling. what is the lone star state doing right? what lessons should our lawmakers in d.c. be learning from it? senator kay bailey hutchison served tex sass in that role for 20 years. senator hutchison. thanks the time for being with us today. >> i appreciate it. so glad you're coming to houston looking at that great, dynamic environment.
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we're happy you're there. melissa: we discovered the secret in texas and especially houston is doing it right. when you look at the employment picture. or real estate where prices have gone up 16 out of the past 17 years. what is the secret sauce from your perspective from the government? >> we believe business is the economic engine of america. it is entrepreneural city. they were the wildcatters of the past. they have developed in the refinery center as well as oil and gas and pipelines. hear is the government environment that i think makes the difference. we're low-taxed state. we don't have a state income tax. we have a very good regulatory climate. it is solid but it is not intrusive. and we have right-to-work laws. so you can join a union or not. you have a free choice. these are the parameters if
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we followed nationally we would see such a boost in our economy and jobs which is what we all want. melissa: same, the beginning of our show we had rich kinder on the ceo of kinder morgan who said you are what you achieve. has that kind of statement become charged and politicize right now? >> well i do think rich kinder, he is one of the great entrepreneurs of our country. and he is exactly right. he worked for it. he was an entrepreneur and visionary and original and we reward success in this country and it is becoming political. you see other people kind of downgrading mitt romney's success. he worked for it too. we should applaud that if anyone in this country works hard they will be able to succeed. and that should be the criteria. melissa: but ultimately, i mean the opposite of that
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that you didn't build it message. do you think that is destructive to the kind of success you've seen here in texas? >> oh absolutely, when the president said if you have a business you didn't build that. you know, his whole mantra is, we're from the government and we're going to prescribe what success is and we're going to give it to you. no, it is the originalty that has made america. it is success through hard work, and then, applause for success. we aren't an envious nation of successful people which is what president obama seems to want to foment. that if someone is successful they should give more, and the government prescribed way. if you look at mitt romney who gives more in charity of his own free will and look at rich kinder who worked hard and he also is very generous, that's what we want to celebrate in this country. and i do think the politics
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of dragging down success and saying oh, if you're successful then we're going to tell you what your responsibility is not the american way. melissa: senator hutchison, thank you so much for taking time to talk with us today. we appreciate it. >> so glad you're in houston, melissa. melissa: we're enjoying it. >> thank you. melissa: thank you. from america's capital of oil and gas to the capital of green energy? why houston is betting big on renewable power. that's coming up next. plus the floor drops out from underneath oil prices. could a sustained plunge knock the wind out of houston's roaring economy? "piles of money" and went apparently coming up [ male announcer ] you are a business pro.
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♪ . melissa: welcome back to our special edition of "money." we are live in houston, known as america's energy capital of course and it is giving a texas sized push to build a more cleaner and competitive economy. listen to this. the houston is the number one municipal purchaser of renewable energy and the 8th largest overall purchaser in the nation. so is houston's quest for alternative energy giving its oil industry a run for its money? here now with the inside scoop is the publisher of energy magazine. you have your finger on the pulse of the entire magazine. people outside the city would will be surprised to hear those stats. >> houston is ahead of every win.
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which went ahead quietly about our business going green and doing things we do here in texas and do it first and bigger and better than everybody else. melissa: i interviewed a lot of energy executives throughout the years and they said we're in the energy business. whatever it is. we're trying to develop other technologies but we want to provide energy whatever that trend is s that really true? >> if you look at the history of the business there is a lot of facts there because you have people investing in oil and gas, in the windmills and solar and a lot of the investment comes from the oil and gas side. they're all lumped in one twoth. that is true. melissa: is this a profitable investment though or does it depend on the government being there with their subsidies? "bug attack"ing me, sorry. >> no, it is not probable without the government now. the government has got to get it a boost. once that is catches on the government is trying to do it best way they can. i don't necessarily favor
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all those things but certainly our oil and gas industry is one pushing ahead in the green with natural gas. melissa: texas is the largest producer of wind energy? >> we're the largest producer of wind energy in the country. if we were a nation we would be the 6th largest producer in the world. so we're way ahead. melissa: wow! do you think wind energy needs a federal subsidy? i had a big argument with someone about this the other day recently. they were saying such a plentiful and cheap supply to grids around the country that you don't need the subsidy anymore? you do need the subsidy. it was a two-sided argument? >> i don't believe in subsidies and i don't believe the industry does but to kick it off it is already there they have done well. the fruits are being taken right now and expanding on its own. we'll see where the future is and i think it is very good. melissa: you say take away the subsidy? >> yes. i don't think our government can afford anymore subsidies with what we're doing with the budget.
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we need to get real with seem and use energies we can and use investment vehicles like entrepreneurs that were on your show to talk about. melissa: yeah. what would that do to the industry? do you think it would contract a bit? would it cripple it? what would it do? >> well, there are different scenarios the people in the industry of course would say it would contract it and kill it and hurt it. i think it is like anything else. if you're strong, that's why there is needles in an eagles nest. that is why the baby won't fly it won't work. melissa: that is great thing you would only hear in texas. you're a proud houstonian. one of the things i know you have gotten involved in addition to your job at energy magazine you were recently named, i want to get this right, the national chairman of the rotary lomb bored day -- lombardi football program. what is that about? >> the rotary club of houston 4 years ago when vince lombardi died his wife wanted to do something that would fund cancer curses.
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we raised millions of dollars. this year like no other we'll expand that to a one-hour full-blown tv show special. i'm excited about you asking me. it is real honor to be rotarian. it is real honor to be a lombardi chairman. melissa: houstonians work hard and like to achieve and they want to give pack. so we wanted to make sure we gave you your due. >> old things like dance with the one that brung you and ones that you couldn't bring along you bring along when you can on. that's what we're all about. we're giving in this town. melissa: their for coming on tonight. we really appreciate it. all right. got, there we go. look out below!. oil is the fuel of houston's economy. will it continuing dive in crude prices put it at risk? we've got details of that coming up next. at the end of the day it is all about money, you know that. we'll be right back. thank you. ♪ .
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melissa: oil prices dropping for a fourth straight day. now down more than 7% for the week. what. just last friday oil hit a four-month high. what is with these wild swings in oil prices? and how do they affect the oil and gas business the in houston area? joining me darrell horowitz, energy analyst at raymond james based here in houston. i've been waiting for this segment because i'm an energy nerd and i've been wanting to talk price all day. what is it going on? >> you're seeing purchasing index data that suggests the chinese manufacturing index is contracting for the 11th straight month. japanese exports fell a little bit. two large economies on the global basis effectively using less hydrocarbons and a possible release from the strategic petroleum reserve. melissa: we all know when they release oil from the spr it has a one or two day effect. it is not that much oil. traders don't take it that
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seriously. >> you have a lot of geopolitical risk and speculation. that is probably why you saw oil prices escalate to the level it did and we think the fundamentals don't justify $100 oil in this environment especially looking at north american production. melissa: you're not worried about everything going on in the middle east? i just got back from the strait of hormuz. the 10 runs are high. middle east is on fire. seems like oil traders bizarrely for once are not worried about it. >> it is always a concern, melissa. it is something you can never discount. problem we have reconciling with the true fundamentals for the oil market. geopolitical risk is always built in and will ebb and flow, whether it is iranian driven it will have influence. there is rather dramatic boom in oil production here in the states. melissa: it is but talking fundamentals there is lot of essentially money printing going on. when you talk about a fed loose with dollar for a long,
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long time to come, that has to be inflationary. >> oh, sure. >> when dollars are worth less it costs more to buy oil, is that priced in there? are you worried about that? >> we are worried about that. left solution of qe3 will have a tailwind to oil prices just like silver gold and other commodities. melissa: what do you think of price of oil in the near term? i know you said 100 was too expensive? >> we think 89 to 95 over next three to six months of the as the market refocusing on production, oil prices might slip a little further. melissa: you're a proud houstonian. >> i am. melissa: what you see prices at this level is that enough to keep the boom going? >> it is. melissa: really. >> the oil industry and energy industry in general has done a fantastic job maximizing our resources. finding that incremental barrel of oil has gotten cheaper and more fish. >> thanks for coming here. i hope you stick around. we'll have a party. it will be a lot of fun. houston may be the city
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of opportunity but many young college graduates around the country are missing the boat. other gracious host and president of rice university joins me next on what has been done to help their degrees pay off. you can never have too much money. don't forget it. ♪
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this is a test. who would you choose ? wow. you guys take a minute. zon, hands down. i'm going to show you guys another chart. pretty obvious. i don't think color matters. pretty obvious. what'sretty obvious about it ? that verizon has the coverage.
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verin. verizon. we're going to go to another chart. it doesn't really matter how you present it. it doesn't matter how you present it. verizon. more 4g lte coverage than all other networks combined. looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank, like no-fee atms, all over the world. free checkwriting and mobile deposits. now depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today and discover another reason serious investors are choosing fidelity.
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anyone welcome back. we are live in houston for our special series open for business. just this morning the labor department released another report showing first time 385,000 first-time filers. how do today's college graduates preparedness environment? president of rice university, thank you for hosting us today. we have had a fantastic time at your beautiful school. >> we have had a great time having you on our campus. melissa: the weather has been gorgeous. turning back, we see college
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graduates and all these kids walking around the campus here, i worry about after graduation. college graduates that are 11.5% -- that so many graduate. is this true? >> yes, we have all seen that had just been turned we have all seen the to unsent statistics. is a comparative number, graduates are actually doing better. melissa: if you look at different occupations and jobs, you know, there is certainly a difference. the same things you're talking about, employment, salary, the labor department says biomedical engineering is a field of 62% over the next decade. do you fear that your students
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-- that there's going to be jobs? >> we get a lot of biomedical professions but we encourage them to find their passions and the attempt to get a little bit more practical. a lot of our students are pretty smart about finding the right balance between the things they have an interest and passion and end the realities of the job market. melissa: you talk about being a college graduate and you also have to potential. especially when you're talking about higher education as well. we have a big problem in this country. >> would be very careful. if you look at the statistics, some people have $100,000 of
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debt. we can't are set at $10,000 in four years. ours -- our students, we try to give them a small level of debt. melissa: is a driving reason the cost of education? >> are graduates -- none of them majored in bioengineering. there are a number of things. but i actually don't think that the default rate for each institution like ours, is somewhere around one or 2%. we look at other sectors that are much higher. melissa: thank you for having us and thank you f

MONEY With Melissa Francis
FOX Business September 20, 2012 5:00pm-6:00pm EDT

News/Business. Melissa Francis with a breakdown of the day's top stories and their impact on the American Taxpayer. New.

Network FOX Business
Duration 01:00:00
Scanned in San Francisco, CA, USA
Source Comcast Cable
Tuner Virtual Ch. 130 (Fox Business)
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Audio Cocec ac3
Pixel width 704
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on 9/20/2012